When Chipotle’s Stock Caught E. Coli

Dec 8, 2015
J. Webster
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This is a 5 year chart of Chipotle’s stock from Bloomberg. Back on August 14th the stock hit nearly $750 a share but then the E. coli bacteria scare happened and is still happening and there’s really no telling when it will end. Who’s willing to step in and buy Chipotle’s stock when every few days there’s a new state saying they have an outbreak of the E. coli bacteria at Chipotle.

Moreover, what effect does this have on Chipotle’s brand for the long run….who’s claim to fame is their high quality food. Chipotle isn’t like other fast casual restaurants, since they serve fresh food and have a “food with integrity” promise. A lot of other fast food or fast casual places serve food that’s already cooked, but that’s also risky….

In its annual report, Chipotle notes that it may be at a higher risk for outbreaks of food-borne illnesses because of its use of “fresh produce and meats rather than frozen, and our reliance on employees cooking with traditional methods rather than automation.” (ABC News)

cmg_5_year_chart

Here’s a picture of a Chipotle restaurant in New York that’s empty during what’s usually a busy time.

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